GYEONGJU, South Korea, Oct 23 (Reuters) - Finance leaders from the Group of 20 economies will pledge on Saturday to commit themselves to pursue market-determined exchange rates and refrain from "competitive devaluation" of their currencies, a G20 official said.
A communique to be issued at the conclusion of the G20 finance ministers' and central bank governors' meeting here will state: "We're all committed to moving toward market determined exchange rates that reflect underlying fundamentals and refrain from competitive devaluation," said the official, who spoke on condition of anonymity.
The G20 also in the communique will pledge to reduce excessive trade imbalances, but the statement will not contain specific targets for current account surpluses nor deficits, the official added.
"Countries will pursue a full range of policies conducive to reducing excessive imbalances. Persistently large imbalances would warrant an assessment" by the IMF, according to the communique language.
While the United States would support current account targets of 4 percent of gross domestic product by 2015, a U.S. official said there were no expectations of including that level in the statement.
The G20 finance deputies wrangled over the language in a marathon negotiating session that ended at 5 a.m. in South Korea on Saturday and agreed to give the International Monetary Fund enhanced surveillance powers to help police imbalances, and said they would welcome IMF "spillover reports" that asseess the effects of one country's monetary policies on others. (Reporting by David Lawder; Editing by Tomasz Janowski)